Requirement #8 please, thank you

Problem 07-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 40,000 342, 248 98,500 325,540 806,288 600,000 ( 150,000) 450,000 $1,256,288 $ 200,500 12,000 212,500 500,000 712,500 335,000 208, 788 543, 788 $1,256,288 To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 20,500 units. Forecasted sales in units are as follows: April, 20,500; May, 19,500; June, 20,000; and July, 20,500. Sales of 240,000 units are forecasted for the entire year. The product's selling price is $23.85 per unit and its total product cost is $19.85 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,925 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,000 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods inventory is 16,400 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,000. g. Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. j. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. k. Dividends of $10,000 are to be declared and paid in May. I. No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 35% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $130,000 are budgeted for the last day of June. Required: Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.): 1. Sales budget. 2. Production budget. 3. Raw materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet. Calculation of Cash receipts from customers: June Total budgeted sales Cash sales Sales on credit April May IS 468,925 465,075 S 477,000 146,678 139,523 143,100 $ 342.248$325,552 333,900 30% 70% Current month's cash sales Collections of receivables Total cash receipts Total cash receipts from customers April May June IS 146,678 $ 139,523 S 143,100 342.248 342.248 325,553 IS 488.926 481,771 S 468,653 ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April S 40.000 June o May 83,347 S 481.770 565, 117 488.926 124,298 468,653 592,949 528.926 Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions General & administrative salaries Dividends Purchases of equipment OOOOOOO 200.500 147.750 26.595 42,114 X 16 500 X 198,000 149,250 26,865 40,206 > 16,500 10,000 lololololo 201,500 153,000 27.540 41,160 lololo 16,500 130,000 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 433.459 95.467 X 12.000 x 440,821 124,296 569,700 23,248 16,752 40.000 IS 83,347 $ 124,296 S Loan balance May June S April 12,000 (12.000) IS 0 S Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 0 16,752 16,752 IS 0 0